Lemon Law

Can The Manufacturer Deduct An Amount For The Use Of The Vehicle Prior To Its Return?

Yes. A manufacturer can deduct a reasonable allowance for use. Reasonable allowance for use is determined by multiplying the purchase or lease price of the vehicle by a fraction. The fraction used is determined by taking the number of miles of use prior to the first report of the defect directly attributable to the consumer and any previous consumers, plus all miles beyond 25,000 miles as a numerator, over 100,000 miles as a denominator. However, if a court or an alternative dispute settlement proceeding determined that the consumer provided sufficient evidence that the vehicle did not provide reliable transportation for ordinary personal or household use for any period beyond the first 25,000 miles, the court or settlement procedure could reduce the deduction for mileage beyond 25,000 miles.